EMPOWER MUNICIPALITIES TO SUPPORT THEIR BUSINESS COMMUNITIES IN TIMES OF CRISIS (2024)

Issue

“The Community Charter provides the statutory framework for all municipalities in BC except the City of Vancouver…and sets out municipalities' core areas of authority…”[1] Within this framework, grants or financial support to businesses is expressly forbidden.[2] This provision hampers municipalities who wish to support their business community during times of crisis.

Background

In 2020, COVID-19 spread around the globe, creating an unprecedented pandemic in living memory. In addition to the health crisis, COVID-19 created an economic crisis. Many businesses closed or reduced their operations, and jobs were lost. All levels of government scrambled to make relief available as quickly as possible.

The province of British Columbia transferred funds to municipal governments by the end of 2020 on the basis that municipalities would experience a shortfall in their revenues. Some municipalities, recognizing the ongoing hardship experienced by their business community (which makes up a significant portion of their tax base), expressed an interest in working with their local chambers of commerce to administer a grant program for businesses. This could not take place because of the restrictions of the Community Charter[3]

This was not the first crisis businesses in BC have experienced,[4] and it has not been the last. Since this policy was first adopted in 2021, our province experienced catastrophic flooding in November 2021 caused by atmospheric rivers which cut BC off from the rest of Canada.[5] The 2023 wildfire season was the most devastating on record,[6] and as early as February, concerns were being raised about the 2024 wildfire season due to low snow and rainfall levels.

The COVID-19 pandemic, coupled with the increased impacts of climate change, has underscored a fact that chambers and boards of trades have always known – thriving businesses mean thriving communities. Municipalities which take steps to support the recovery of their business community as quickly as possible after any crisis accelerate the future well-being of their communities. The Community Charter should support this practice, not act as an impediment.

THE CHAMBER RECOMMENDS

That the Provincial Government:

1. Create a framework for direct funds/support from municipalities to businesses in times of crisis and that municipalities partner with a chamber of commerce, board of trade or other appropriate non-profit organization in their area to create a transparent, accountable, and equitable disbursement of funds.
2. Without a legislative change, create a pool of resources that municipalities can quickly access during a state of emergency to provide to businesses directly to help them maintain solvency and the economic viability of the community.
3. Examine other options, in addition to funding, to provide local government with more tools, authority, and funding streams to help businesses during a state of emergency.